Valid from the 1st of January, 2018
The scope of the new financial instruments standard and its relevant effects
The measurement of financial instruments (receivables, loans, securities, investments, liabilities) is currently regulated by IAS 39. This standard will be replaced by IFRS 9 Financial Instruments with a mandatory effective date of 1 January 2018. Earlier application is permitted. The final standard was issued in July 2014.
The purpose of the standard was to lay down principle-based rules for financial instruments. IFRS 9 will fundamentally change the classification and measurement of financial assets and will introduce a new impairment methodology.
The new standard mostly concerns credit institutions and financial enterprises, which have significant financial assets (loans, securities, shareholdings, etc.) arising as part of their normal course of business. Furthermore, all entities which have accounts receivables, securities or other financial assets or liabilities in their financial statements are also affected as these items also qualify as financial instruments and, as a result, these entities are subject to the new impairment and classification methodology introduced in IFRS 9.
The adoption of the standard will be mandatory as of 1 January 2018 for all entities that prepare IFRS financial statements or adopt IFRS accounting, regardless of the extent to which an entity holds financial instruments.
Please download our brochure for more information.
The IFRS 9 Tool
Deloitte developed a supporting tool for classification of financial instruments according to IFRS 9. The tool’s core functions are:
- Available through intranet, personalized web based surface
- Workflow based
- Credit database input and output
- Multi-language, multi-company unified solution
- Riporting, audit and project management support
- Continuous classification support according to IFRS9
Please download our presenation for more information about the tool.